Blue chip corrected: Rupiah appreciation pressures consumption goods performance

Thursday, 29/04/2010 00:00 WIB

Irvin Avriano A.

Bisnis Indonesia

Blue chip corrected: Rupiah appreciation pressures consumption goods performance

JAKARTA: Price correction of blue chip following the performance report of quarter I/2010 happened to PT Indocement Tunggal Prakarsa Tbk confirming the too much price due to the prior rally.

The second largest cement producer nationwide stock price yesterday dropped by 3.35 percent or IDR550 per share unit following the announcement of the corporate IDR786.36 billion net profits in quarterI/2010 grew 56.42 percent from quarter I/2009.

The situation happened similarly to the sock price of PT Astra Agro Lestari Tbk, the Astra Group's CPO producer, which was corrected by 2.31 percent following the announcement of 24 growth worth IDr272 billion.

The mounting stock price of Indocement since April 19 from IDR14,450 to IDR15,500 last Tuesday was corrected yesterday into IDR14,950. The rally was driven by the investor expectation emerging from the soaring cement sales in quarter I/2010.

Data of the Indonesian Cement Association shows the consumption of cement in quarter I/2010 stood at 9.7 million tons rose by 16.86 percent from quarter I/2009 confirming the transmission of economy to real sector.

Separately, analyst of PT Sinarmas Sekuritas Alfiansyah considered there is price consolidation as seen from the current trend of the blue chip following the prior growth two weeks before.

"With the negative sentiment from Greece whose debt rating fell down, I think the consolidation will continue but it goes together with the index correction in the short run."

Separately, in the consumption goods sector, the cosmetic producer PT Mandom Indonesia Tbk booked the plummet of net revenue in quarter I/2010 by 2.4 percent into IDR368.2 billion jointly with the net profit drop of 24.3 percent into IDR45.9 billion.

Corporate secretary of Mandom Kazue Junus said the condition is triggered by the soaring rupiah which pressured the quarter I/2010 exportation by 15.7 percent into IDR94.1 billion and thus increases the promotion cost and business cost up to 28.3 percent into IDR72.1 billion.

Performance pressures following the appreciation of rupiah also happened to PT Enseval Putera Megatrading Tbk, the distributor and supplier of medicine and cosmetic products. Corporate net profit in quarter I/2010 declined by 32.46 percent into IDR77.17 billion.

President Director of Enseval Vi-djong-tius said the net profit drop was driven by the exchange rate spread losses worth IDr4.08 billion and the falling business profits by 18.91 percent into IDR75.30 billion despite the net sales rose slightly by 4.93 percent into IDR2.03 trillion.

Meanwhile, the industry miscellaneous sector, cable producer PT Sumi Indo Kabel Tbk recorded the swelling net losses by 238.86 percent into IDR2.38 billion from quarter I/2009 with IDR38.8 billion net profits.

In construction sector, PT Pembangunan Perumahan Tbk recorded the quarter I/2010 net profits grew by 26.24 percent into IDR15.36 billion with IDR561 billion revenues. (Bisnis/iaa/bsi/08/10/ags/faa)